GST violation: Mumbai film director held for causing ₹62 crore loss

A 34-year-old film producer and director was arrested by officials of the Mumbai zone of the directorate general of Goods and Services Tax Intelligence (DGGSTI) on Thursday for violating laws of the goods and services tax (GST) and causing a loss of ₹62 crore to the exchequer.

The accused,  Vijay Ratnakar Gutte, is the director of post-production firm, VRG Digital Corporation Private Limited. He is also the director of upcoming film, ‘The Accidental Prime Minister’, which is based on Dr Manmohan Singh. Gutte has also produced movies such as Badmashiyaan and Emotional Atyachar.

According to GST officials, between December 2017 and January 2018, Gutte had availed of input tax credit (ITC) to the tune of ₹34.37crore on the basis of 149 bogus invoices issued by Horizon Outsource Solutions Private Ltd (HOSPL) without any receipt. “He also fraudulently claimed refund worth ₹28.21 crore from GST department in cash on the basis of bogus invoices. This amounts to an offence under section 132 (1) (c) CGST Act,” a senior GST official said.

GST officials said Gutte’s company VRG committed the offence in connivance with several other firms. VRG took bogus invoices from HOSPL who procured 19 fake invoices from Best Computer Services.

Best Computer Services in turn got bogus invoices from Rane Megastructure Private Limited. “Gutte was remanded in judicial custody up to August 14,” an official said.

Directors of HOSPL and Best Computer Services were arrested by GST officials on May 19 in an alleged tax fraud of ₹173 crore.

Earlier, Gutte’s film, The Accidental Prime Minister, courted controversy after state opposition parties alleged that Gangakhed Sugar and Energy Private Limited, a sugar mill owned by Gutte’s father Ratnakar, used names of 2,298 farmers to apply for loans worth ₹328 crore. However, Gutte had refuted all allegations saying, “I don’t know anything about this. I have not visited the mill in the last five years.”

First Published: Aug 03, 2018 11:26 IST